Which of the following is characteristic of a hyperinflation?

Question

Quizplus · Accepted Answer

A hyperinflation is characterized by a very high rate of inflation (usually over 50% per month) and is often caused by the government printing large amounts of money to finance its expenditures. This leads to a rapid decrease in the value of the currency, causing prices to skyrocket. It is unlikely for the government to run a large budget surplus or for households to increase their savings in a hyperinflationary environment. The real stock of money would not rise by more than 50% per month, as the hyperinflation would cause the value of the currency to decrease rapidly. A gold standard would limit the ability of the government to print money, making it less likely for a hyperinflation to occur.

Which of the Following Is Characteristic of a Hyperinflation